Review & Outlook

The local market fell further on Wednesday, with retail sentiment dented by back-to-back limit-down losses in selected lower liners on forced selling pressure. The FBM KLCI ended 2.66 points down at 1,491.21, after swinging between early low of 1,487.52 and high of 1,494.32, as losers swarmed gainers 832 to 265 on lower turnover of 5.22bn shares worth RM3.16bn.

Cautious retail sentiment, external headwinds from a weak China growth outlook and widening geopolitical risks in the Middle East should hurt sentiment in the immediate term. Immediate index support remains at 1,480, with better supports at 1,450/1,440 and 1,430. The immediate overhead resistance will be at 1,510, which restricted upside in Jan 2023, with next key hurdles seen at 1,520 and 1,550.

Further weakness on Maxis will be attractive to bargain for rebound upside towards the 200-day ma (RM4.00), with a breakout to aim for the 76.4%FR (RM4.14) and the 16/6/23 high (RM4.46) ahead, while the 38.2%FR (RM3.61) cushions downside. Tenaga need confirmed breakout above the 150%FP (RM10.64) to target the 161.8%FP (RM10.90) and 176.4%FP (RM11.22) going forward, while the 100-day ma (RM9.97) provides good uptrend support.

News Bites

• Water tariff rates will be increased by 22 sen per cubic meter from Feb 1 for domestic users in Peninsular Malaysia and the Federal Territory of Labuan, says the National Water Services Commission.

• AmBank Group has granted RM158.5mn financing facilities to Lembaran Beruntung Sdn Bhd to part finance its latest project Branniganz Suites at Bukit Bintang in Kuala Lumpur.

• Favelle Favco Bhd has secured five contracts, for the supply of cranes to machinery replacements, worth a combined RM79.4mn

• Sarawak Consolidated Industries Bhd is in talks with the Land and Survey department of Sarawak for the potential acquisition of 22 acres of land.

• Malaysia Airports Holdings Bhd has announced that a consortium consisting of ALSTOM Transport Systems (Malaysia) Sdn Bhd, IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd will be completing the aerotrain replacement project.

• TDM Bhd has invested RM29.1mn to build two hospitals this year, which are expected to increase the profits considerably.

• Advancecon Holdings Bhd has secured RM21.2mn in subcontract work from China Communications Construction (ECRL) Sdn Bhd.

• Techna-X Bhd is acquiring a 51% stake in information technology firm Netsec Sdn Bhd in a bid to capture growth in Southeast Asia's cybersecurity space.

• Artroniq Bhd told Bursa Malaysia that it is not aware of any corporate development that would have caused unusual market activity after its share price slipped to a more than one-year low on Wednesday.

• Hillcove Sdn Bhd has ceased to be a substantial shareholder in Excel Force MSC Bhd after it disposed of 24.7mn shares or a 4.4% stake in the financial services business solutions provider.

• Datuk Seow Gim Shen, Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd have emerged as the new substantial shareholders of Rexit Bhd after acquiring an aggregate of 92.3mn shares or a 53.3% stake in the group for a total cash consideration of RM78.4mn via direct business transactions.

• Cuscapi Bhd's executive chairman Datuk Jayakumar Panneer Selvam has ceased to be a substantial shareholder of the point-of-sale systems provider, after he disposed of 55mn shares or a 5.8% stake.

• Infomina Bhd's net profit for the 2QFY2024 jumped 77.2% to RM9mn from RM5.1mn in the previous year, fuelled by lower administrative expenses and higher revenue.

• China's economy grew 5.2% in the fourth quarter of 2023 and for the full year.

• Singapore's Non-oil domestic exports fell 1.5% YoY in December, compared with a 1% increase recorded in November.

• Resilient consumer spending helped propel the US economy in recent weeks, offsetting weakness in other sectors like manufacturing, the Federal Reserve said in its Beige Book survey of regional business contacts.

Source: TA Research - 18 Jan 2024